Partner Feedback First, apply your own insights you have learned in class and the textbook to write feedback to your negotiation partner on what they did effectively (areas of strength). Next, do som

Moms.com (Buyer)

Name

(1711456)

University Canada West

Course Name: MGMT 645 (03)

Professor: Dr. Dalton Grady

Due Date:14-08-2020

Word Count: 1892

Introduction

The negotiation skill applied in an integrative approach. In integrative negotiation, the aim is for both parties to enjoy the agreement. What we see here is a television company that wants to enjoy the benefits of airing a good audience-capturing program and the other party is a production company that wants to sell its program under the syndicated sales system. Therefore, the two parties are all after something to benefit from the other. In the syndicated television program sales, the television company does not engage in the production of programs that it airs.

The company contracts the already established producers to sell programs for the company to air. These programs cost differently based on their ratings. A program with a higher rating means more viewership. For a television company, the higher the ratings the better the advertisement fees. Most companies that want to run adverts prefer when there are a lot of viewers, peak hours. Peak hours are often when the best programs are being aired. In that way, more people get to see the advertisement and the company makes more revenue. As a manager, it falls under one's role to negotiate the best deal for the television company. (Slatkin, 2010).

In this paper, the WCHI Company is well funded and engages in rapid buying of programs just to ensure it stays ahead of the competition. However, with the period break, the company seeks revival in the industry and seeks a deal that will improve viewership and by extension, profits.

Integrative negotiations

Integrative negotiations are expressed as win-win situations. For the case of WCHI, the company needs to revive operations by getting a new program in its ranks. Previously, the company is known for its heavy purchasing of programs. Purchasing of the best programs ahead of competitors makes the company stand ahead of the rest because it has access to the leading programs. However, the company overstretched its ambitions. By purchasing more than it could pay for, they found themselves paying more in terms of licenses. To curb this, the company halted the purchase of new programs for a while. It damages when there is no new program brought in because viewers go out to seek fresh energy. By the time the company decides to purchase, the go after HOLLYVILLE'S Moms.com; an upcoming television show that has admirable ratings. The production company despite its size is becoming a struggler in the industry and need to sell. The company seeks to get revenue off the sale of the program while the company needs to increase fresh content.

These kinds of negotiations take a while since both parties need a win from it. If the deal tilts towards one side than the other, then there is a great possibility that it is no longer a win-win situation. There is a party that loses and the expense of the other. The point here is that the tv company gets good content while the producer is properly remunerated. For negotiations of this nature, they often require a lot of patience because the financial aspect of the deal will have to get a thorough assessment by both parties. Unlike other negotiations, this kind takes longer and often become very intense. For both parties, there is a need to understand that the company should not benefit at the expense of the producer and vice versa.

Role as a general manager of WCHI

In terms of this deal, the main role is to negotiate an amicable deal with the producing company's syndicate salesperson. The negotiation should be centred on price and terms of the deal. As the manager, it is expected that the deal is in line with what the WCHI company is seeking. While negotiating, the general manager understands that they are acting as an agent to the company. The objective here is to get a financially favourable deal. Since the recent challenges of WCHI because of the impulse buying of shows, there is a need to have a deal that the company will not have to overpay for. With the drop in viewership, the company lacks the same financial muscle as it did two years ago. The deal should capture the program under reasonable terms in terms of license fees. While negotiating the deal, it is important to keep an open mind and have alternatives in mind, if the deal being negotiated falls through.

Some of the other important resources as a manager include finalising sale deals with syndicate sales representatives. These are representatives of television program producers who come to sell off a program for air. These syndicate programs are cash cows for producers therefore, it is necessary to be sharp and firm while negotiating. The rating assessment of the company in the Chicago market is also the duty of the manager. Assessing the market share gives the manager a view of where the company is and the plans and activities it should undertake to build from its current position moving forward. Learning from past mistakes, the company expects the manager to analyse the current crop of programs they have and decide on how the potential audience of the television company will consume the content. The content should be tailored to what is trendy to the majority of the audience. The syndication market is often vast with a lot of content that spreads across different rates and costs; the general manager should study the market and the products in a view of making an informed decision about the program to purchase.

Important issues

In the issues relating to the organisation, there is a need to get the best deal possible out of the negotiations being conducted. If the deal is to be done, then as a manager, I am out for the best terms available. It is crucial to factor in the performance of the company financially, at the time of the deal is not as it is meant to be; the company is in recovery. Therefore, the manager is expected to give the company a favourable term in the long run. The emphasis is on raising the ratings of WCHI company in the market and allowing it to regain the position it was in before the company reduced due to improper decision-making. If the manager can prioritise these two, then they are in a good position to regain the company performance levels.

BATNA, reservation price and target

The BATNA is the best alternative to a negotiated agreement. When making a deal, there have options left open. Instead of solely relying on one option as the way out, the company should have different negotiated agreements; from these alternatives, the manager can pick the best of them. In syndicated distribution, none of the programs is the company's production. The company, therefore, is free to select the best option that suits its needs. The alternative here is rated at three million USD. The company is in a rebuilding process; therefore, a reservation price is important. It guides the manager in the negotiation because it gives a ceiling over which the company cannot pay. For the Moms.com, the manager knows well that the company would not pay above sixty-thousand USD per episode; for the one-hundred episode. The company targets a specific audience based on what the program is about. Moms.com is based on the story of women trying to balance the world and the changes in parenting their growing adolescent children. The viewership is majorly women aged between twenty-five and fifty-four years old; this group comprises of at least forty-five per cent of the viewership of the program.

Sources of power in the negotiations

In every negotiation, information is power. The manager here knows that there are no other companies who are willing to acquire Moms.com because of different disadvantages. Therefore, the producer has only one active negotiator who wants to acquire the program. The production company will not play hardball in the negotiations because they understand the need to make the sale. Also, the fact that there are fewer stations makes it more difficult for syndicate distribution. The stations can almost be termed as operating in a monopolistic competition market; where they have the say about prices and licenses in the market.

Issues important to the opponents, BATNA and source of power

In this case, we take the opponent to be the HOLLYVILLE production company; they are seeking to sell the program Moms.com to the television company. For the sale to go through, a syndicate sales representative comes along to guide through the negotiations. For them, the goal is to get sufficient pay for the program. Also, they want to build a good relationship with the WCHI company because the company will by extension purchase the Juniors program from them after this deal is completed. From the market situation, it appears as if the WCHI company is the only one capable of conducting business with the producer at the moment. The opponent has their BATN; they can choose to negotiate with a different company for the sale of Moms.com Their target is the proper remuneration. In the negotiations, the company will feel to be in a pole position because they know WCHI need to program to improve their ratings; without the program, the company is doomed.

Opening strategy and response to an opponent's strategy

Coming through in a position of strength is important; however, as a manager, you should be careful not to try and arm-twist the opponent. These negotiations should be a win-win; come strong but present an acceptable offer for the opponent to review. When the opponent comes out strong, the best response is to put the talks on hold and make them feel the fear of losing the deal. Never come out as too desperate to get the deal done.

Concepts and strategies relevant to this negotiation exercise

As said, the negotiation is a win-win style; therefore, the negotiators should understand it is not about who gets an advantaged deal. (Litwak, 2016). The deal should be fair and acceptable to the parties. WCHI should pay up a reasonable fee and the producer should deliver quality. Based on the concept away from this text, this strategy of offer and acceptance works well. One of the parties should initiate an acceptable offer. However, it is important to have negotiations that are aimed at making the deal better. (Narlikar, 2010). If one party feels they are not getting the best out of it, the discussions should continue till consensus is reached.

Conclusion

Integrative negotiation is important because it gives the negotiators some slight comfort that they will both walk away with favourable terms from the deal. The parties should be open-minded and willing to compromise for such a deal to happen. If the parties hold ground, the negotiations may take longer to get done.

Appendix

References

Litwak, M. (2016). Dealmaking in the film & television industry: From negotiations to final contracts. Los Angeles: Silman-James Press.

Narlikar, A. (2010). Deadlocks in multilateral negotiations: Causes and solutions. Cambridge, UK: Cambridge University Press.

Slatkin, A. A. (2010). Communication in crisis and hostage negotiations: Practical communication techniques, stratagems, and strategies for law enforcement, corrections, and emergency service personnel in managing critical incidents. Springfield, IL: Charles C. Thomas, Publisher.